Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The company purchases natural gas from two companies: Southern Gas and Northwest Gas. Demand forecasts for the coming winter season are Hamilton County, 400 units; Butler County, 200 units; and Clermont County, 300 units. Contracts to provide the following quantities have been written: Southern Gas, 500 units; and Northwest Gas, 400 units. Distribution costs for the counties vary, depending upon the location of the suppliers. The distribution costs per unit (in thousands of dollars) are as follows:From ToHamilton Butler ClermontSouthern Gas 10 20 15Northwest Gas 12 15 18
a. Develop a network representation of this problem.b. Develop a linear programming model that can be used to determine the plan that will minimize total distribution costs.c. Describe the distribution plan and show the total distribution cost. (First determine initial transportation cost then use LCM).
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here